The Effect Of Information Technology And Perceived Risk In Anticipating Tax Evasion

Authors

  • Adelheid Gracelia Fiero Paoki Faculty of Business and Economics, Petra Christian University, Surabaya, East Java, Indonesia
  • Jesica Delya Yusha Faculty of Business and Economics, Petra Christian University, Surabaya, East Java, Indonesia
  • Steven Emanuel Kale Faculty of Business and Economics, Petra Christian University, Surabaya, East Java, Indonesia
  • Yenni Mangoting Faculty of Business and Economics, Petra Christian University, Surabaya, East Java, Indonesia

DOI:

https://doi.org/10.22219/jrak.v11i2.14871

Keywords:

Information Technology, Perceived Risk, Tax Evasion

Abstract

This study aimed to determine tax evasion dynamics under the risk perception of using tax information technology. The study also investigated perceived risk as a moderating variable in the relation between information technology (IT) and tax evasion. One hundred questionnaires were collected from individual taxpayers and analysed using Partial Least Squares (PLS). The result showed that IT could reduce tax evasion. The moderating test result also discovered that taxpayers' risk perception could increase IT usage to reduce tax evasion. These results highlighted that society's acceptance of information technology is more of an effort to do taxation duties that would help them avoid tax inspection and penalty. Risk is believed to be attached to IT, and so eases review and detection of tax fraud, consideration by the taxpayer when tax evasion. That signifies tax authorities' success in modernizing tax administration to minimize tax evasion while increasing tax service quality by optimizing information technology usage. Therefore, these findings serve as a reference for the tax authorities to enact reforms in sustainable information technology to simplify tax administration, improve taxpayers' services and law enforcement.

Downloads

Download data is not yet available.

References

Akram, M. S., Malik, A., Shareef, M. A., & Goraya, M. A. S. (2019). Exploring the interrelationships between technological predictors and behavioral mediators in online tax filing: The moderating role of perceived risk. Government Information Quarterly, 36(2), 237–251. https://doi.org/10.1016/j.giq.2018.12.007

Alm, J. (2021). Tax evasion, technology, and inequality. Economics of Governance. https://doi.org/https://doi.org/10.1007/s10101-021-00247-w

Alm, J., Beebe, J., Beebe, J., Marian, O. Y., & Soled, J. A. (2020). New Technologies and the Evolution of Tax Compliance. Virginia Tax Review, 39(3).

Azmi, A. A. C., Kamarulzaman, Y., & Hamid, N. H. A. (2012). Perceived Risk and the Adoption of Tax E-Filing. World Applied Sciences, 20(4), 532–539.

Baaj, Q. M. A. Al, Marshedi, A. A. S. Al, & Dhyaa Abdulrazaq Abduljabar Al-Laban. (2018). The Impact of Electronic Taxation on Reducing Tax Evasion Methods of Iraqi Companies Listed In the Iraqi Stock Exchange. Academy of Accounting and Financial Studies Journal (, 22(4).

Babici, G., Crivelli, E., & Marinkov, M. (2019). Tax Administration Strength and Tax Efficiency in Emerging Europe: Lessons for Romania. International Economic Journal, 33(4), 741–756.

Bagchi, A. (1993). Information Technology in Tax Administration: Recent Cross-Country Experience. Economic and Political Weekly, 28, 1640–1644.

Bananuka, J., Night, S., Ngoma, M., & Najjemba, G. M. (2019). Internet financial reporting adoption: Exploring the influence of board role performance and isomorphic forces. Journal of Economics, Finance and Administrative Science, 24(48), 266–287.

Bashir, I., & Madhavaiah, C. (2015). Consumer attitude and behavioural intention towards Internet banking adoption in India. Journal of Indian Business Research, 7(1), 67–102.

Bird, R. M., & Eric M Zolt. (2018). Tax Policy in Emerging Countries. Environment and Planning C: Government and Policy, 26(1), 73–86.

Carter, L., Schaupp, L. C., & Hobbs, J. (2011). The role of security and trust in the adoption of online tax filing. Transforming Government People Process and Policy, 5(4), 303–318.

Chu, X., Li, X., Chiang, W.-C., & Zhang, Y. (2019). Taxpayers’ online information privacy concerns, antecedents, and behavior intention. Journal of Accounting and Taxation, 11(4), 57–66.

Featherman, M. S., & Pavlou, P. A. (2003). Predicting e-services adoption: a perceived risk facets perspective. International Journal of Human-Computer Studies, 59(4), 451–474. https://doi.org/https://doi.org/10.1016/S1071-5819(03)00111-3

Hamilton, R., & Stekelberg, J. (2017). The Effect of High-Quality Information Technology on Corporate Tax Avoidance and Tax Risk. Journal of Information Systems: Summer, 31(2), 83–106.

ICAEW. (2019). Digitalisation of tax: international perspectives. Institute of Chartered Accountants in England and Wales.

Im, I., Kim, Y., & Han, H.-J. (2008). The effects of perceived risk and technology type on users’ acceptance of technologies. Information & Management, 45(1), 1–9. https://doi.org/10.1016/j.im.2007.03.005

James W. Taylor. (1974). The Role of Risk in Consumer Behavior. Journal of Marketing, 38(2), 54–60.

Jimenez, G., TSionnaigh, N. M. an, & Kamenov, A. (2013). Information Technology for Tax Administration.

Kaur, S., & Arora, S. (2020). Role of perceived risk in online banking and its impact on behavioral intention: trust as a moderator. Journal of Asia Business Studies.

Ludwig Christian Schaupp, & Carter, L. (2010). The impact of trust, risk and optimism bias on E-file adoption. Inf Syst Front, 12, 299–309. https://doi.org/https://doi.org/10.1007/s10796-008-9138-8138-8

Lymer, A., Hansford, A., & Pilkington, K. (2012). Developments in tax e‐filing: practical views from the coalface. Journal of Applied Accounting Research, 13(3), 212–225.

Mangoting, Y. (2020). Perceived Risk, Perceived Functional Benefit, dan Kepuasan sebagai Penentu Intensi Berkelanjutan Wajib Pajak Menggunakan e-filing. Jurnal ASET, 12(1), 32–47.

McGee, R. W., Djatej, A., & Sarikas, R. H. (2012). The Ethics of Tax Evasion: A Survey of Hispanic Opinion. Accounting & Taxation, 4(1), 53–74.

OECD. (2017). Technology Tools to Tackle Tax Evasion and Tax Fraud. OECD Report. https://doi.org/https://www.oecd.org/tax/crime/technology-tools-to-tackle-tax-evasion-and-tax-fraud.htm

Pelaez, A., Chen, C.-W., & Chen, Y. X. (2017). Effects of Perceived Risk on Intention to Purchase: A Meta-Analysis. Journal of Computer Information Systems.

Prebble, Z. M., & QC, J. P. (2010). The Morality of Tax Avoidance. Creighton Law Review, 43(3), 693–745.

Prichard, W., Custers, A., Dom, R., Davenport, S., & Roscitt, M. (2019). Innovations in Tax Compliance Conceptual Framework. Policy Research Working Paper, 1–46.

Raphael, A. B., & Segun Idowu Adeniyi. (2017). Electronic Taxation and Tax Evasion in Nigeria: A Study of Lagos State. Journal of Academic Research in Economics, 9(1), 122–129.

Rifat, A., Nisha, N., & Iqbal, M. (2019). Predicting e-Tax Service Adoption: Integrating Perceived Risk, Service Quality and TAM. Journal of Electronic Commerce in Organizations, 17(3).

S. Featherman, M., & A. Pavlou, P. (2003). Predicting e-services adoption: a perceived risk facets perspective Author links open overlay panel. International Journal of Human-Computer Studies, 59(4), 451–474. https://doi.org/10.1016/S1071-5819(03)00111-3

Schaupp, L. C., & Carter, L. (2010). The impact of trust, risk and optimism bias on E-file adoption. Information Systems Frontiers, 12, 299–309. https://doi.org/https://doi.org/10.1007/s10796-008-9138-8

Slemrod, J., & Yitzhaki, S. (2002). Tax avoidance, evasion, and administration. In A. J. Auerbach & M. Feldstein (Eds.), Handbook of Public Economics. Elsevier Science B. V.

Yamen, A. E., Mersni, H., & Ramadan, A. (2020). Tax evasion and public governance before and after the European “big bang”: a red flag for policymakers. Journal of Financial Crime, ahead-of-p(ahead-of-print). https://doi.org/10.1108/JFC-04-2020-0064

Zaidi, S. K. R., Henderson, C. D., & Gupta, G. (2017). The moderating effect of culture on e-filing taxes: evidence from India. Journal of Accounting in Emerging Economies, 1(7), 134–152.

Downloads

Published

2021-08-27